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Swiss Re reports net income of USD 2.5 billion for first nine months of 2023

03 November 2023 Swiss Re

Ad hoc announcement pursuant to Article 53 LR

• Property & Casualty Reinsurance (P&C Re) net income of USD 1.5 billion; combined ratio of 94.3%1
• Life & Health Reinsurance (L&H Re) net income of USD 634 million
• Corporate Solutions net income of USD 492 million; combined ratio of 91.3%1
• Return on investments (ROI) of 3.5%; Q3 recurring income yield increased to 3.7%
• Very strong capital position with Group Swiss Solvency Test (SST) ratio of 314% as of 1 July 2023

Swiss Re reported a net income of USD 2.5 billion in the first nine months of 2023, with a profit of USD 1 billion in the third quarter. All businesses contributed to the strong result. Swiss Re maintains its guidance for full-year targets.

Swiss Re's Group Chief Executive Officer Christian Mumenthaler said: "Swiss Re's performance in the first nine months of 2023 is the result of our continued focus on underwriting quality. This has enabled us to navigate a heightened risk environment that continues to be characterised by significant loss events for the insurance industry."

Swiss Re's Group Chief Financial Officer John Dacey said: "With interest rates continuing to rise, we see improvements in the recurring income yield and in our overall investment results. Combined with the improved underwriting performance, this has significantly strengthened the Group's earnings capacity."

Swiss Re reports a strong result in the third quarter
With a profit of USD 1 billion in the third quarter, Swiss Re reported a net income of USD 2.5 billion and a return on equity (ROE) of 25.9% for the first nine months of 2023. This compares with a net loss of USD 285 million and an ROE of –2.1% for the first nine months of 2022. The significant improvement was mainly driven by the underwriting performance in P&C Re and L&H Re, supported by increasing investment results.
Net premiums earned and fee income for the Group increased by 4.2% to USD 33.7 billion in the first nine months of 2023, compared with USD 32.4 billion in the prior-year period. At constant foreign exchange rates, net premiums earned and fee income grew by 5.3%.

The Group achieved a return on investments (ROI) of 3.5% in the first nine months of 2023, compared with 1.6% in the prior-year period. In the third quarter, the ROI was exceptional at 4.8%, supported by net realised gains stemming from real-estate sales, which were partially offset by losses from targeted sales of lower-yielding fixed-income securities. Overall, the investment portfolio continues to benefit from higher interest rates. The recurring income yield reached 3.7% in the third quarter, while the fixed income reinvestment yield settled at 4.9%.

Swiss Re's capital position remained very strong, with a Group Swiss Solvency Test (SST) ratio of 314% as of 1 July 2023.

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